Why It’s Time To Get Strict With Your Payment Terms

A common problem that many small business owners and freelancers have is payment. From late payments to not being paid at all, many business owners will struggle to keep their business afloat while juggling the uncertainty of payment.

If you’ve always been a bit lax with your payments, it’s time to get tough. Getting your finances in order is crucial for securing your business’ future, and your own finances too.

Take the tough approach with your payments to do what’s right for you and your business.

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You deserve to be paid for your hard work

When you work for yourself, the way other businesses can see you can be unsettling. Some may try to undervalue your worth or use the age of your business against you. There are a lot of myths that keep freelancers from getting paid what they’re worth, but that doesn’t mean that you should buy into them.

Be strict with your payment terms and what you charge, you may find that most people are just pushing their luck and will accept your pricing. 

Maintaining security is important

Having secure payment systems in place is important for your business. This not only protects your finances but protects your customers and clients too. There are a lot of different types of secure payment, and you should explore the ones that are right for you. Weighing up whether to use ACH vs EFT is one way to help you decide on a secure and reliable payment process. Review your security processes to help ensure all your data is protected from potential threats.

The future is uncertain

The global pandemic has been particularly tough on the self-employed. It’s estimated that 46.6% of self-employed people lost their jobs during the coronavirus crisis. There are many reasons for this, but with so much ongoing uncertainty, you need to cover yourself. Always invoice on time and be clear about your payment terms. You may even want to take a retainer for your services to cover you against some loss if a problem occurs. 

Your business depends on it

When you’re self-employed, your business can be your only source of income. One of the mistakes small businesses make is that they fail to plan ahead, and that can include your finances. Managing cash flow is crucial for those who are self-employed, as a few missed payment deadlines can be all it takes to drive your business into the red. Taking a tough stance on your invoicing can help you maintain effective cash flow and ensure you’re taken seriously as a small business owner.

Running your own business or being self-employed means you won’t have the financial safety net that larger organizations have. Protecting your business’ finances should be a priority, and you should never accept more than you’re worth. Get tough with your payment terms and give your business the financial security it needs to thrive.

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